Fill - Free fillable Application to dissolve an insolvent SCIO: application form (OSCR Scottish Charity Register) PDF form

Application to dissolve an insolvent SCIO: application form

and guidance notes

Introduction

A SCIO can only be dissolved by making an application to OSCR for the SCIO to be removed from

the Scottish Charity Register and dissolved. Once a SCIO is dissolved, it will cease to exist and

there is no provision for restoring it to the Register at any future point.

This application form and its guidance notes apply if you are applying to dissolve a SCIO which is

insolvent, having outstanding debts of at least £1,500 and which is unable to pay its debts as they

become due.

There is currently no provision to dissolve an insolvent SCIO which has outstanding debts of less

than £1,500. Insolvent SCIOs which are in that position are urged to seek independent advice and,

if possible, to come to an agreement with their creditors to settle their outstanding debts. This may

allow the SCIO to apply for a solvent dissolution.

The dissolution of an insolvent SCIO involves two main steps; the sequestration of the estate of the

SCIO, then the removal of the SCIO from the Scottish Charity Register. Sequestration is the Scottish

legal term for bankruptcy and is the process for the recovery of unpaid or overdue debts.

While OSCR deals with the initial application to dissolve and then the removal of the SCIO from the

processing of the sequestration are dealt with by the Accountant in Bankruptcy (AiB).

AiB is an Agency of the Scottish Government which supervises the process of insolvency in Scotland

and which, in some instances, acts as Trustee in Bankruptcy. In the case of an insolvent SCIO which

applies to OSCR to be dissolved, AiB will always act as the Trustee in Bankruptcy; the SCIO is not

permitted to nominate its own choice of trustee.

Process for dissolving an insolvent SCIO

When OSCR receives your completed application and required documents, it will publish the Notice

of Application for Dissolution submitted with the application on its website within 14 days. If any

elements of the application are incomplete, OSCR will advise you which documents are still required

and delay publication until after they have been received.

The Notice of Application for Dissolution will remain on OSCR’s website until the sequestration

of the SCIO is awarded or refused; the decision on the sequestration is likely to be made within

approximately 4 to 6 weeks of the Notice being published.

Within 14 days of having published the Notice of Application for Dissolution on its website, OSCR will

pass the application to AiB to make a decision on whether the SCIO shall be sequestrated.

At the same time, OSCR will notify you it has made the referral and advise you to pay the

debtor application fee direct to AiB. The fee is currently £200 and must be paid to AiB within

21 days of AiB receiving the application from OSCR. If the fee has not been paid within this

timescale, AiB must refuse the application to award sequestration.

AiB, on receipt of the fee, will then assess your application to determine if the SCIO is insolvent with

outstanding debts of at least £1,500. If it is satised this is the case, AiB will award sequestration of

the SCIO’s estate and notify OSCR and the SCIO of its decision. OSCR will in turn publish the award

of sequestration on its website and remove the Notice of Application for Dissolution. Details of the

sequestration will also be entered into AiB’s Register of Insolvencies which can be accessed at

www.aib.gov.uk.

The sequestration process will take a minimum of 15 months to complete, although it may take

considerably longer depending on the number or type of assets the SCIO holds, and depending on

how easily the Trustee in Bankruptcy can access the information he or she requires.

Once the sequestration of the estate is complete, AiB will transfer any surplus assets to the body

named in the resolution of the SCIO’s members. AiB will then notify OSCR that the sequestration

is complete; OSCR will then remove the SCIO from the Register and the SCIO will therefore be

dissolved.

Step-by-step guidance to completing

your application form

This is an application to the Accountant in Bankruptcy to sequestrate the estate of the SCIO and to

OSCR to subsequently dissolve the SCIO by removing it from the Scottish Charity Register.

These notes will take you in order through the questions in the application form and explain what

information we are looking for and, in some cases, what we will consider when we assess your response.

Q1. Charity registration details

Please enter the name and Scottish Charity Number of the SCIO which is applying for

consent to dissolve.

Q2. Consent from other regulators

Please tell us if you are registered with any other regulators or other bodies, and if

you require consent from them in relation to the proposed winding up or

dissolution.

Application to dissolve an insolvent SCIO

Regulations 4, 5 and 6 of the Scottish Charitable Incorporated Organisations

(Removal from Register and Dissolution) Regulations 2011

Q1. Charity registration details

SCIO name

Scottish Charity Number

Please complete all sections of this form, including the appendices and the annexe form 25.

Q2. Consent from other regulators

Regulator name

Reference number

Consent required?

(Please tick)

Q3. Grant funding

Please tell us if you are obliged to return any of the SCIO’s assets (as detailed in

Appendix 3) to a grant-giving body under the terms of the funding agreement. If so,

please list these assets and provide details of the body to which they must be returned.

We will pass this information on to the Accountant in Bankruptcy to be considered during

the process of sequestration.

Q4. Proposed recipient of surplus assets

Before you apply to dissolve an insolvent SCIO, you must pass a resolution of your

members agreeing to the sequestration and subsequent dissolution of the SCIO. This

resolution must also state the name of the body or bodies which your members want to

receive any surplus assets of the SCIO in the event that there are any remaining after all

of the SCIO’s debts and liabilities are settled.

In this section, you should name the body or bodies which are specied in the resolution as

the proposed recipient of any surplus assets. The recipient(s) must have purposes which

are the same as, or which closely resemble, those set out in the SCIO’s constitution. In

order to ensure that your proposal meets this condition, you should also provide us with

either a copy of the recipient body’s constitution or a statement of its purposes.

Please note that you must not transfer any assets to this body; the transfer will be completed

by AiB only if there are any surplus assets remaining after the sequestration is complete.

Q5. Storage of accounting records

Section 44(2) of the Charities and Trustee Investment (Scotland) Act 2005 states that

proper accounting records must be preserved by the charity for 6 years from the end of

the nancial year to which they relate. We therefore ask you to conrm the name and

address of the person or organisation who will store these accounting records.

Q3. Grant funding

Q4. Proposed recipient of surplus assets

Q5. Storage of accounting records

Name

Address

Postcode

Q6. Information relevant to the application

Please use this section to tell us about any relevant information which is not

contained elsewhere within the application.

Appendix 3 to the application, the Application of the SCIO to Accountant in

Bankruptcy for Sequestration of the Estate of the SCIO, contains most of the

detail about the application, including the contact person’s name and address and

the details of the SCIO’s outstanding liabilities.

Hire purchase or leases Most recent statement of

balance in pounds sterling

Tax owed by the charity Cash value of tax owed

(including PAYE, National

Insurance contributions and

VAT)

Other debts owed by the

charity

List of any other debts owed

with their cash value

Q6. Information relevant to the application

Q7. Signature and data protection statement

The SCIO’s trustees must authorise one of the trustees to sign the application form and data

protection statement on behalf of the other trustees.

Please see checklist below and ensure that all the required appendices and

documents are attached to the application. Failing to do so could delay the

processing of the application.

Checklist

Have you:

• completed all sections of the application form, including

appendices 1, 2, 3, 4 and annexe form 25?

• enclosed a copy of a resolution of your SCIO’s members that states,

(subject to this application meeting the legal requirements):

• the SCIO’s estate will be sequestrated

• any surplus assets will be transferred to another named body or bodies

whose purposes are the same as or which closely resemble those of

your SCIO

• the SCIO will be removed from the Scottish Charity Register and

therefore dissolved?

• ensured that the resolution was:

• passed by a two-thirds majority of the members voting at the meeting

• certified by either two-thirds of the charity trustees or one of the charity

trustees on behalf of all, if so authorised

• passed no more than 21 days before the date of this application

• enclosed an up to date copy of your SCIO’s constitution?

• enclosed a copy of the constitution of the body or bodies to which any

surplus assets of your SCIO should be transferred?

• enclosed a copy of your SCIO’s register of charity trustees?

Please see Appendix 4 for a template for this Resolution

Please return the completed application form and documentation to:

OSCR

2nd Floor, Quadrant House

9 Riverside Drive

Dundee DD1 4NY

We will issue acknowledgement of your application within 14 days of receipt. We will not

be able to progress the application until all the required documents requested below are

submitted to OSCR.

Q6. Signature and data protection statement

Data protection

OSCR is a registered data controller in terms of the Data Protection Act 1998. Any information

you give us will be held securely and in accordance with the rules on data protection. OSCR

processes information only in accordance with its statutory regulatory functions under the

Charities and Trustee Investment (Scotland) Act 2005, and to inform research into the charity

sector in Scotland. Information may be shared with other regulatory bodies including HMRC, and

selected information will appear on the Scottish Charity Register. Further information about data

protection is available on the OSCR website.

Declaration

You may be committing an offence if you give an answer that you know is untrue or

misleading.

I certify that the information entered in this form is correct to the best of my knowledge.

I conrm that the information entered has been approved by the charity trustees and I am

authorised to submit this information.

Signed by one of the

trustees on behalf of all

Print name

Date

D D M M Y Y Y Y

Appendix 1 – Declaration of insolvency of SCIO

This is the formal declaration by the charity trustees that the SCIO is insolvent, having

outstanding debts of at least £1,500.

The declaration must be signed by either:

• at least two-thirds of the total number of charity trustees, or

• one charity trustee on behalf of the other charity trustees, if they have authorised him/

her to do so.

Appendix 1

DECLARATION OF INSOLVENCY OF SCIO

(Form to be sent to OSCR)

Name of SCIO……………………………………………..

Principal Office of SCIO…………………………………

We the charity trustees of the above named SCIO hereby affirm that as of this date the SCIO is

insolvent, having outstanding debts of at least £1500.

Name of charity trustee:-----------------------------------------------

Signature of charity trustee:-----------------------------------------